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Minnesota DEED Publishes Paid Leave Guidance for Employers and Employees

04 Jul



Update Applicable to:Effective date
All covered employersSee Details Below

What happened?

On May 15, 2024, the Minnesota Department of Employment and Economic Development (DEED) published Frequently Asked Questions Guides for employers and employees.

What are the details?

Both Guides provide crucial insight into the MN DEED’s interpretation and intended implementation of the PLL.

Key Bites for Employers

  • Key Dates for Employers:
  • First wage detail reports due October 31, 2024 (based on wages paid between July 1, 2024, and September 30, 2024). Employers must also have an online account with MN DEED to file the reports.
    • Start of payroll deductions: January 1, 2026.
    • First premiums submission to MN DEED: April 30, 2026.
  • Coverage and Participation:
  • The Paid Leave program covers most employers in the state.
    • Paid Leave is funded by both employees and employers through payroll taxes and employer premium payments, like other state-run paid family leave programs.
    • All employers are required to participate. Municipalities, local government entities, religious organizations, non-profits, and agricultural employers are required to participate.
    • Part-time employees are also covered, unless exempt.
    • Employers offering paid family leave through a private carrier can apply for exemption from premium payments, provided the private plan offers the same or better benefits.
    • Information on private plan exemptions is expected to be before the initial premium payment deadline on April 30, 2026. Employers without a qualifying private plan should expect to make their first paid leave premium payment on or before April 30, 2026.
  • Wage Detail Reporting and Premium Collection:
  • Employers need to provide the first and last name, social security number, wages paid, and hours worked for each employee.
  • Support for Small Employers:
  • Small businesses with 30 or fewer employees are eligible for reduced premiums.
    • They may be eligible for small business assistance grants to hire temporary workers or to increase an existing worker’s wages.
  • Rulemaking
  • The Minnesota Department of Employment and Economic Development is hosting virtual listening sessions in June and July to gather public input on draft rules related to Paid Leave, a new program that goes into effect Jan. 1, 2026.
    • Interested parties can view the listening session schedule, sign up to participate, and leave comments either on the Minnesota Rulemaking or on the Office of Administrative Hearings page below.

Business Considerations

  • Employers should be aware that even if exempt from the program, they may still need to create a “Paid Leave Only” account for the Paid Leave Law (PLL) by the first wage report submission deadline.
  • Employers should schedule the key dates to plan and prepare for compliance.
  • Employers should verify if they are exempt because the law requires most employers to participate.
  • Employers that qualify as small businesses should take advantage of the reduced premiums and check their eligibility for small business assistance grants.

Source References


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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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